Decor Express - Polokwane. An existing franchise store for sale

PROFILE

Description:

An established Decor Express franchise located in Polokwane. Well established and profitable (returning over 30% p.a.) this store has good internal systems, well trained staff and is easy to run. Financials are up to date and available on request to approved potential purchasers.

Industry / Sector:

Retail - Store

LOCATION

State / Province:

Limpopo RSA

City / Town:

Polokwane

Location / Area:

City Centre

Portability:

Moderately Portable - Possible to relocate with some disruption and cost. Would not be advisable

PRICE

Asking Price:

R 750 000

Conditions:

Inclusive of inventory on hand

FINANCIAL & OPERATING INFORMATION

Turnover:

R 300 000 per month

Profit:

R 20 000 per month

Annual Return:

32
% per annum

No. of Staff:

4

Year Established:

2016

Legal Persona:

Private Company (Pty) Ltd

Other Information:

Decor Express is a proudly South African company bringing a new look and feel to the home decorative products market. Decor Express franchisees own and operate a full-service decor store, trading under the Decor Express trademark which offers them access to the franchisors proven procedures and trade secrets.

Décor Express specialises in PVC Ceilings and a wide range of home decorative products. Stores are decorated so as to conveniently display all the finishes available to home owners to achieve their dream home finishes.
PVC Ceiling, for example, are displayed with matching cornices and breath-taking light fittings. Outlets also stock a wide range of 3D wall art, dado and curtain rails, blinds, flooring and the recently launched bathroomware line.

The customer base incorporates the general public, contractors and developers.

Franchisor support:
Additional training and operational guidance is provided by the franchisor’s technical an marketing support team. But perhaps the most the most important is the assistance the franchisor provides in locating contractors and developers as they are vital to the trade success of the outlet.

Franchisee profile:
They key qualities of a successful franchisee include the ability to manage and participate in a high energy and sales and marketing environment and system oriented approach. Franchisees must have a professional approach to providing efficient and enthusiastic customer service.

Finer details:

The business has been trading since December 2016, and has a yearly revenue stream of ±R3 500 000 (excl.).

The franchise store trades under the name Decor Express Polokwane and is situated in Polokwane City Centre, Bok Street.

The shop currently employs 4 employees, with employee costs per month amounting to approximately R20 000. This includes 2 store managers and 2 other personnel. We are looking to down scale to 2 employees in total, which will cut monthly costs by an estimate of R10 000. We are considering decreasing this expense, by at least a third.

The property trades from a premise under a lease agreement for the remaining period of 5 years. The lessor is Moolman Group for whom details can be provided on request. We renegotiated a better rate effective from 1 December 2017, resulting in a monthly saving of R10 000.

The shop is part of the franchise chain Decor Express
Please visit our website at www.decorhyper.co.za for more details on the products and ranges on offer.

The store is to be sold inclusive of stock on hand, which amounts to approximately R400 000.

Reason for selling: Relocation
I have relocated and therefor can no longer effectively manage the store. The store, however, requires minimal input and has been trading under management of the 'store manager', with whom I communicate on a daily basis.

The average gross profit percentage on sales equal 35%, which fluctuates, but will never go below 30%.

Store will be sold as a running concern, therefor no VAT implications, and the new owner will take over ownership/shareholding in the company (BC Industries Pty Ltd), which includes loan accounts held by shareholders and all other items reflecting on the balance sheet.

The store makes use of Sage One accounting as ERP system.All employees are trained in the use thereof, but should additional training be required, this can be provided by Head Office.

Bookkeeping services are offered by Head Office at an additional fee of R2 000, if you wish you use these services.

Royalties are payable to HO monthly at 5% of the turnover.

Marketing fees of R2 500,00 are payable monthly to HO.

All tax matters are up to date (tax clearance certificate can be provided on request).

Advertising total to date is quite excessive as a lot of funds were initially invested in advertising in order to increase market share. These fees as well as rental will come down substantially going forward.

Benefits in purchasing this already established branch in the Limpopo area:

BC Industries t/a Décor Express Polokwane holds the first right to open any additional Décor Express Store within the province

Constant supply of good quality goods which cannot be offered by the competitors

Big market for this product in the Polokwane area

Pre-negotiated prices of goods with suppliers by franchisor which enables the store to offer goods at prices lower than competitors

Constant increase in sales since opening, of which graphs and detailed reports can be provided.

Already established brand due to initial investment in advertising expense